• Green Fuel Initiative: Amazon, IKEA, and over 30 other companies will request bids for cargo transport using near-zero emissions e-fuels, aiming to shift the ocean shipping industry towards greener operations.
• Significant Emission Reduction: Contracts starting in 2027 could transport cargo equivalent to 1.4 million containers, potentially cutting 470,000 metric tonnes of GHG emissions.
• Market Impact: Alliance members expect to pay a premium initially, but aim to drive down costs as demand and supply for e-fuels increase.

Amazon.com and IKEA, prominent members of the Zero Emissions Maritime Buyers Alliance (ZEMBA), are intensifying their efforts to decarbonize ocean shipping by preparing for a major tender to launch in January 2025. This initiative, focusing solely on e-fuels for primary propulsion, marks a significant step in creating demand for near-zero emissions alternatives in maritime transport.

“This is how you get on path and on track to being net-zero,” said alliance member Carl Berger, who leads sustainability and export operations for Amazon Global Logistic

Scaling Green Fuel Use:

ZEMBA aims to aggregate at least 80 billion tonne nautical miles of demand, equivalent to transporting 1.4 million twenty-foot containers between Shanghai and Los Angeles, starting in 2027.

The world’s fleet moves more than 80% of global trade and contributes about 3% of the world’s GHG emissions. Green Fuel are vital to fully decarbonizing ocean shipping because they have long-term potential to compete against fossil fuels on cost and supply, the alliance said.

Ingrid Irigoyen, President and CEO of ZEMBA, emphasized the groundbreaking nature of this effort:

“ZEMBA is making history by voluntarily catalyzing commercial e-fuel deployment through our next collective tender,” said Ingrid Irigoyen, President and CEO of ZEMBA. “Our members are demonstrating that freight buyers are willing to make multi-year advanced offtake commitments now to incentivize the creation of new markets for the most scalable solutions, which will be required for them to achieve their 2030 and 2040 climate goals. By creating economies of scale and targeting investment in the right long-term solutions, our members can also accelerate the pace and manage overall costs of this clean energy transition.”

Expanded Membership and Ambitious Goals:

ZEMBA’s membership has grown to 40 multinational companies, including new participants such as AIT Worldwide, dsm-firmenich, and SEKO Logistics. The alliance’s commitment through multi-year contracts is aimed at incentivizing the market for scalable, near-zero emissions solutions, helping members meet their 2030 and 2040 climate targets.

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Tender Design and Collaboration:

The upcoming tender builds on ZEMBA’s success with its first tender, completed in April 2024, which introduced liquified biomethane as a Green Fuel alternative. This effort saw Hapag-Lloyd winning the contract to help abate 82,000 metric tonnes of GHG emissions in 2025 and 2026. The second tender incorporates lessons learned from these experiences and a collaborative Request for Information conducted with the Lloyd’s Register Maritime Decarbonisation Hub.

ZEMBA’s tender will accept bids from individual carriers or consortiums, prioritizing solutions that offer at least a 90% emission reduction. Companies interested in participating can access resources on ZEMBA’s updated Sustainability Framework and tender scope on their website, developed with the Center for Green Market Activation, Lloyd’s Register, and Pillsbury.

Call to Action:

Potential bidders are invited to join the RFP process and attend a webinar on November 21st for more details.